B24&Co stock has a beta of 1.59, the current risk-free rate is 3.09 percent, and the expected return on the market is 10.59 percent. What is B24&Co's cost of equity?   Multiple Choice A. 19.93% B. 15.02% C. 15.27% D. 24.84%

EBK CFIN
6th Edition
ISBN:9781337671743
Author:BESLEY
Publisher:BESLEY
Chapter8: Risk And Rates Of Return
Section: Chapter Questions
Problem 16PROB
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B24&Co stock has a beta of 1.59, the current risk-free rate is 3.09 percent, and the expected return on the market is 10.59 percent. What is B24&Co's cost of equity?

 

Multiple Choice

A. 19.93%
B. 15.02%
C. 15.27%
D. 24.84%
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